Property Taxes

Property is taxed at every stage: when you buy, while you hold, and when you sell or pass it on. Recent years have brought major change — flat CGT rates, higher SDLT surcharges, the end of the furnished holiday lettings regime and Making Tax Digital for landlords — and planning that worked five years ago may now cost you money. We advise investors, landlords, developers and corporate owners across the whole picture.

Income Tax on Rental Property

We structure rental income efficiently across personal, joint, partnership and company ownership, claim every allowable expense (repairs, insurance, letting and professional fees), and use the £1,000 property allowance and rent-a-room relief where they help. Relief for mortgage interest on residential lets is restricted to a basic-rate tax credit rather than a full deduction — a key driver of the personal-versus-company decision.

Note for holiday-let owners: the furnished holiday lettings regime was abolished from April 2025, ending its capital allowances and CGT advantages. Former FHL properties now follow normal property business rules — we help owners reassess structure and reliefs.

Landlords are also now within Making Tax Digital: quarterly digital filing became mandatory from April 2026 for property/trading income over £50,000, extending to £30,000 from April 2027.

Capital Gains Tax on Property

Residential property gains are taxed at 18% (basic rate) and 24% (higher rate) — the same rates as other assets since October 2024 — with a £3,000 annual exempt amount. Private residence relief remains the big exemption for your main home, with planning around periods of absence, nominations for second homes, and the narrow shared-occupation lettings relief.

Remember the 60-day rule: CGT on UK residential disposals must be reported and paid within 60 days of completion. We handle the returns, time disposals across tax years, use both spouses' bands and bank losses effectively.

Stamp Duty Land Tax (SDLT)

Standard residential rates run 0% to £125,000, then 2%, 5%, 10% and 12% through the bands. Additional dwellings carry a 5% surcharge on top, non-UK residents pay a further 2%, and companies buying homes over £500,000 can face a flat 17% rate unless a relief applies. First-time buyer relief gives 0% up to £300,000 and 5% to £500,000.

Multiple dwellings relief was abolished for completions on or after 1 June 2024, so bulk-purchase planning has changed. We calculate SDLT correctly (including mixed-use and lease premium analysis), claim available reliefs and recover overpayments.

Corporation Tax and Company Ownership

Holding property in a company means corporation tax at 19%–25%, full interest deductibility, but extra layers on extraction and potential ATED. We model personal versus company ownership properly — income needs, growth plans, financing and exit — rather than following fashion. Developers get trading-versus-investment analysis and capital allowances claims on qualifying integral features and fixtures.

VAT on Property

Option to tax decisions on commercial property, zero-rating on qualifying new residential builds, VAT recovery on development and conversion costs, transfer of going concern treatment on sales, and capital goods scheme management. Getting VAT wrong on a property deal is one of the costliest mistakes in tax — we review the position before contracts are exchanged.

Inheritance Tax and Succession

The nil-rate band is £325,000 and the residence nil-rate band £175,000 — up to £500,000 per person when a home passes to direct descendants (tapered for estates over £2 million), and both transferable between spouses. With bands frozen until at least April 2030, property portfolios are increasingly exposed. We plan gifting, trusts, Business Property Relief where property is used in a business, and the residence nil-rate band conditions.

ATED for Corporate-Held Homes

Companies holding UK homes worth over £500,000 face ATED charges of £4,600 to £303,450 a year for 2026/27 unless a relief applies — and the return is due by 30 April even when it does. We assess reliefs, file the returns and advise on whether the corporate wrapper still makes sense.

Looking Ahead

The Autumn Budget 2025 announced that tax rates on property income are set to rise by 2 percentage points from April 2027. Changes like this shift the personal-versus-company arithmetic — we keep your structure under review so you're ahead of the rules, not behind them.

What You Get With Acumon

• Personal versus company ownership analysis with real numbers
• Every allowable expense claimed, plus the £1,000 property allowance and rent-a-room relief
• CGT planning: private residence relief, timing, losses and 60-day returns
• SDLT calculations, surcharge advice, reliefs and refund claims
• VAT option to tax, zero-rating and development recovery planning
• IHT planning: gifting, trusts, BPR and the residence nil-rate band
• ATED returns and relief claims for corporate-held homes

Why Acumon for Property Taxes?

• Covers income tax, corporation tax, CGT, SDLT, VAT, ATED and IHT on property
• Many of the firm's professionals previously worked for HMRC
• Acts for landlords, investors, developers and corporate property owners

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.